EFAMA in collaboration with SWIFT, has published a new report on the automation and standardisation rates of fund orders received by transfer agents (TAs) in the cross-border fund centres of Luxembourg and Ireland in 2019. The report highlights the progress made in the increased automation of fund orders and the use of ISO standards.
Twenty-nine TAs from across Ireland and Luxembourg participated in the survey covering 80% of the Irish market and 75% of the Luxembourg market.
Key findings from the report include:
- The total volume of orders processed by the 29 survey participants reached 42.2 million last year, compared to 38 million in 2018.
The total automation rate of orders of cross-border funds increased to 91.8% in Q4 2019, from 90.4% in Q4 2018. The use of ISO messaging standards rose from 58% to 62.3% during the same period, while the use of manual processes dropped from 9.6% to 8.2%.- The total automation rate of orders processed by Luxembourg TAs reached 90.2% in Q4 2019, compared to 89% in Q4 2018. The ISO automation rate increased from 72.2% in Q4 2018 to 76.6% in Q4 2019, while the use of manual orders dropped from 11% to 9.8% during the same period.
Tanguy van de Werve, Director General of EFAMA, commented: The continuing increase in the automation rate of cross-border funds orders illustrates the efforts by European fund managers to reduce operational risks, increase efficiencies and generate cost savings. These efforts enhance our industry's competitiveness and, in turn, the satisfaction of investors."
Janice E.Chapman, Manager, Investment Funds, Standards, SWIFT, adds: It is very pleasing to see that overall, manual and proprietary orders both continue to show a downward trend and ISO 20022 automated orders are on an upward trend. This is nicely backed up by an increase of funds volumes on SWIFT for orders as well as an increase for the other fund business processes supported by ISO 20022 messaging, such as fund portfolio and asset transfers."
For further information, please contact:
Daniela Haiduc
Head of Communications
+32-2-473 562 936
cc: info@efama.org
SWIFT press contact
Finsbury
+32-2-655 33 77
cc: swift@finsbury.com
Notes to editors:
About the European Fund and Asset Management Association (EFAMA)
EFAMA, the voice of the European investment management industry, represents 28 Member Associations, 59 Corporate Members and 23 Associate Members. At end Q1 2020, total net assets of European investment funds reached EUR 15.7 trillion. These assets were managed by more than 34,250 UCITS (Undertakings for Collective Investments in Transferable Securities) and 29,000 AIFs (Alternative Investment Funds). More information available atwww.efama.org or follow us on Twitter @EFAMANews or LinkedIn @EFAMA.
SWIFT is a global member-owned cooperative and the world's leading provider of secure financial messaging services. We provide our community with a platform for messaging, standards for communicating and we offer products and services to facilitate access and integration; identification, analysis and financial crime compliance. Our messaging platform, products and services connect more than 11,000 banking and securities organisations, market infrastructures and corporate customers in more than 200 countries and territories, enabling them to communicate securely and exchange standardised financial messages in a reliable way. As their trusted provider, we facilitate global and local financial flows, support trade and commerce all around the world; we relentlessly pursue operational excellence and continually seek ways to lower costs, reduce risks and eliminate operational inefficiencies. Headquartered in Belgium, SWIFT's international governance and oversight reinforces the neutral, global character of its cooperative structure. SWIFT's global office network ensures an active presence in all the major financial centres. For more information, visit www.swift.com or follow us on Twitter: @swiftcommunity and LinkedIn: SWIFT
The report can be downloaded on the websites of EFAMA and SWIFT.
